Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FIDELITY SOUTHERN CORP | lionqe1231168k-earnings.htm |
FOR IMMEDIATE RELEASE
Contacts: Martha Fleming, Steve Brolly
Fidelity Southern Corporation (404) 240-1504
FIDELITY SOUTHERN CORPORATION REPORTS RECORD EARNINGS
FOR FOURTH QUARTER - $15.1 MILLION; $38.8 MILLION IN 2016
ATLANTA, GA (January 19, 2017) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ: LION), holding company for Fidelity Bank (the “Bank”), today reported financial results for the quarter and year ended December 31, 2016.
KEY RESULTS
• | Net income of $15.1 million and $38.8 million, or $0.57 and $1.50 per diluted share, for the quarter and year |
• | Total revenue increased to $85.4 million, or 7.8%, and $290.6 million, or 18.8%, for the quarter and year |
• | Total deposits of $3.6 billion increased by $91.7 million, or 2.6%, during the quarter and $451.1 million, or 14.2%, in 2016 |
• | Loans serviced for others of $9.2 billion grew by $280.5 million, or 3.1%, during the quarter and $1.2 billion, or 14.6%, in 2016 |
• | Tangible book value increased to $13.26, or 3.8%, during the quarter and 4.7% in 2016 |
Fidelity's President, Palmer Proctor, said, “Our strong fourth quarter and year-end results reflect our continued focus on growth and profitability. The integration of Bank of Georgia, Peachtree City, GA, and American Enterprise Bank, Jacksonville, FL, will provide meaningful presence and relationships in these respective growth markets.
“Organic growth remains our focus. Additional emphasis on systems and efficiencies will provide capacity for continued growth and activity.
“Our team and bank are well positioned to leverage market opportunities and talent.”
Fidelity's Chairman, Jim Miller, added, “Indeed, 2016 was very good and mortgage certainly did its part. It was a year of consolidating and one of planning for growth in 2017 and beyond for our Commercial and Trust areas especially, while doing so efficiently. Shareholder value and customer service are our guidestars. We are optimistic!”
1
BALANCE SHEET
Total assets of $4.4 billion at December 31, 2016, represented a slight decrease of $5.9 million, or 0.1%, compared to September 30, 2016, and an increase of $540.6 million, or 14.0%, compared to December 31, 2015, primarily due to steady loan production during 2016, supplemented by loans added in the AEB acquisition completed in March 2016. Total deposits increased by $91.7 million, or 2.6%, compared to September 30, 2016, and $451.1 million, or 14.2%, compared to December 31, 2015. Short-term borrowings fluctuated with the changes in loans and deposits, decreasing by $109.3 million, or 31.0%, during the quarter, and increasing by $33.6 million, or 16.0%, for the year.
Loans
Total loans held for investment of $3.3 billion at December 31, 2016, represented a slight decrease of $30.0 million, or 0.9%, compared to September 30, 2016, and an increase of $405.3 million, or 14.0%, compared to December 31, 2015. An increase in the level of indirect auto loans designated as held for sale of $50.0 million at December 31, 2016, offset strong loan production for the quarter as average loans increased by $56.6 million, or 1.5%, during the quarter. The Bank continues to generate new business as well as leveraging its expansion through acquisitions.
Loan Servicing Rights
Gross servicing rights increased by $17.3 million, or 21.1%, during the quarter and $14.4 million, or 16.9%, during 2016. Sales of residential mortgage, SBA, and indirect auto loans continued to generate servicing rights. In addition, $13.1 million in net MSR impairment recovery was recorded during the quarter, an increase of $12.7 million compared to the recovery recorded in the prior quarter. The impairment recovery occurred as estimated future prepayment speeds decreased significantly due to an increase in interest rates over the fourth quarter.
Deposits
Total deposits at December 31, 2016, of $3.6 billion increased by $91.7 million, or 2.6%, during the quarter and by $451.1 million, or 14.2%, compared to December 31, 2015. For the quarter, increases in all categories of interest bearing deposits were partially offset by a slight decrease in noninterest bearing deposits due to normal fluctuations leading up to year end. Demand deposits continued to grow throughout the footprint, resulting in an increase in average interest bearing demand deposits of $28.7 million, or 2.5%, for the quarter.
During 2016, money market and demand deposits increased by $352.2 million, or 19.3%, including $133.1 million from the AEB acquisition, as the Bank continued its deposit marketing program, increasing the number of demand deposit accounts.
Borrowings
Short-term borrowings decreased by $109.3 million, or 31.0%, during the quarter and by $33.6 million, or 16.0%, during 2016, primarily as a result of fluctuations in short-term liquidity needs which the Bank manages through short-term FHLB advances and Fed funds purchased.
INCOME STATEMENT
Net Income
Net income was $15.1 million for the quarter and $38.8 million for the year, an increase of $8.3 million, or 122.3%, and a slight decrease of $369,000, or 0.9%, as compared to the same periods in the prior year, respectively. The primary driver of the increase in net income for the quarter was an additional $18.7 million of noninterest income from mortgage banking activities and a reduction in expenses incurred related to acquisitions as the AEB acquisition was completed in the third quarter of 2016. For the year, mortgage banking activities
2
accounted for $16.0 million of the increase, which was partially offset by an increase in the provision for loan losses of $4.0 million. The year over year increase in average earning assets of $782.2 million, or 25.1%, over the past twelve months, contributed an additional $28.0 million, or 27.8%, in net interest income, while noninterest income from indirect lending activities decreased by $3.9 million, or 20.8%, due to the volume of loan sales, and other noninterest income decreased by $3.3 million, or 56.1%, mainly due to lower gains on ORE sales in 2016. Noninterest expense increased by $38.1 million, or 23.4%.
On a linked-quarter basis, net income increased by $2.6 million, or 20.4%, as total revenue increased by $6.2 million, or 7.8%, partially offset by a slight increase in the provision for loan losses of $367,000, and by an increase of $2.0 million, or 3.8%, in noninterest expense.
Interest Income
Interest income was $38.3 million and $149.3 million, for the quarter and year ended December 31, 2016, an increase of $5.2 million and $32.6 million, or 15.9% and 28.0%, as compared to the same periods in the prior year. Average loans for the quarter increased by $588.8 million, or 18.5%, as compared to the same quarter a year ago, and increased by $718.6 million, or 24.8%, year over year, which was the primary reason for the increase in interest income.
Interest income for the quarter saw a 3 basis point decrease in the yield on loans to 3.90%, as compared to the same period a year ago. Discount accretion on acquired loans contributed 4 basis points to the loan yield for the quarter as compared to a de minimis amount in the prior year. Excluding the discount accreted on acquired loans, the yield on loans for the quarter decreased by 7 basis points. Year over year, interest income saw a 12 basis point increase in yield on loans to 3.98%. Discount accretion on acquired loans contributed 17 basis points to the loan yield for 2016, as compared to 3 basis points in the prior year, or a change of 14 basis points, due to higher resolution of problem assets and loan payoffs during 2016. The remainder of the changes in loan yields for the quarter and year were attributable to a combination of fluctuations in prepayment penalties on commercial loans and dealer reserve amortization on indirect loans combined with slightly lower contractual loan yields as new loans, on average, have been originated at lower yields over the previous twelve months.
On a linked-quarter basis, interest income decreased by $1.6 million, or 4.0%. The decrease in interest income was also driven by a decrease in the yield on loans of 22 basis points, primarily driven by higher discount accretion on acquired loans during the third quarter due to resolution of problem assets and loan payoffs, as compared to discount accretion in the fourth quarter. Excluding the discount accreted on acquired loans, the yield on loans was down by 7 basis points to 3.82%.
Interest Expense
Interest expense was $5.4 million and $20.4 million, for the quarter and year ended December 31, 2016, an increase of $455,000 and $4.6 million, or 9.3% and 29.4%, as compared to the same periods in 2015, as a combination of organic growth and deposits added through recent acquisitions resulted in a year over year increase of $198.2 million in average interest-bearing deposits.
The increase in interest expense due to larger average deposit balances was offset by a decrease in the rate paid on interest-bearing accounts, primarily time deposits, which decreased by 3 basis points as compared to the same quarter a year ago.
On a linked-quarter basis, interest expense increased by $217,000, or 4.2%, due to slight increases in the rate paid and average interest-bearing liabilities.
Net Interest Margin
The net interest margin was 3.25% for the quarter, compared to 3.23% for the same period in 2015. Net interest income (tax equivalent) rose to $33.1 million for the quarter, or an increase of 17.0%, as compared to $28.3 million for the same period in 2015.
3
The increase in the net interest margin of 2 basis points occurred primarily due to lower rates paid on interest bearing deposits as compared to the same quarter in the prior year. The primary reason was a decrease of 3 basis points for rates paid on time deposits during the quarter.
The increase in the level of net interest income (tax equivalent) for the quarter occurred primarily due to an increase in the level of average earning assets of $585.5 million, or 16.9%, due to a combination of organic growth and acquisitions over the past year. The remainder of the increase in net interest income for the quarter occurred due to the decrease in interest costs noted above.
On a linked-quarter basis, the net interest margin decreased by 20 basis points, primarily as a result of normalizing accretion of purchase discounts on acquired loans which was elevated in the previous quarter.
Provision for Loan Losses
The provision for loan losses was $2.5 million and $8.2 million, for the quarter and year ended December 31, 2016, a decrease of $612,000 and an increase of $3.9 million, as compared to the same periods in 2015. The primary reason for the increase in the provision was the increase in net charge-offs for the quarter and year, primarily in the indirect auto loan portfolio. In addition, the provision for loan losses increased during 2016 to reflect changes in qualitative factors and asset quality trends, resulting in an increase in the allowance for losses to total loans of 3 basis points during 2016.
On a linked-quarter basis, the provision for loan losses increased by $367,000, as net charge-offs increased compared to the previous quarter, mostly due to seasonal fluctuations, mainly in the level of net charge-offs of indirect loans.
Noninterest Income
Noninterest income was $47.1 million for the quarter, an increase of $18.5 million, or 64.4%, as compared to the same period in 2015. The quarterly increase is primarily due to a net increase in noninterest income from mortgage banking activities of $18.7 million, or 99.2%, as compared to the same period in 2015. Noninterest income was $141.3 million in 2016, an increase of $13.4 million, or 10.5%, compared to the prior year, also primarily due to an increase in noninterest income from mortgage banking activities of $16.0 million, or 18.7%, partially offset by a decrease in noninterest income from indirect lending activities of $3.9 million, or 20.8%.
Mortgage production income was $23.2 million for the quarter, a $4.8 million, or 26.4%, increase over the same period in 2015. Mortgage production income was $97.3 million in 2016, an increase of $14.2 million, or 17.1%, from the same period in 2015, due to increased loan originations and sales.
Mortgage servicing revenue increased by $711,000, or 16.2%, for the quarter and by $3.3 million, or 20.6%, for the year, as compared to the same periods in 2015, due to increased loan originations and sales, as the portfolio of mortgage loans serviced for others increased from $6.7 billion to $7.8 billion, or 17.1%, year over year.
As noted earlier, the increase in market interest rates resulted in a net recovery of MSR impairment of $13.1 million during the quarter as compared to net MSR impairment of $1.0 million for the same period in 2015. A net MSR recovery of $372,000 was recorded in 2016 compared to a net impairment of $3.1 million for 2015.
On a linked quarter basis, noninterest income increased by $7.8 million, or 19.9%, largely due to a net increase in income from mortgage banking activities of $7.4 million, or 24.5%. The increase was largely driven by a $12.7 million swing in MSR impairment as a net recovery of MSR impairment was recorded during the quarter, offset by lower market gains, net of $5.9 million recorded in the previous quarter. This increase was partially offset by a decrease in net marketing gains due to a decrease in mortgage production of $71.3 million to $756.9 million for the quarter as compared to mortgage production for the previous quarter.
4
Noninterest Expense
Noninterest expense was $54.2 million for the quarter, an increase of $10.9 million, or 25.3%, as compared to the same period in 2015, mostly due to increased expenses associated with organic growth as well as recent acquisitions. Increases were noted in salaries and employee benefits, commissions, and other noninterest expense, as discussed below.
Salaries and employee benefits increased by $5.2 million, or 25.4%, for the quarter, as compared to the same period in 2015. The approximate growth in the FTE count of 106 or 9.0%, at December 31, 2016, as compared to December 31, 2015, primarily due to recent acquisitions, drove the majority of the increase in salaries. Also included in the increase is $636,000 of employer taxes and employee benefits, primarily resulting from an increase in both number of employees and the increased cost of employer-paid benefits, mainly medical premiums.
Commissions increased by $3.4 million, or 55.5%, for the quarter due to increases in mortgage loan production. Mortgage loan production increased by $189.0 million, or 33.3%, to $756.9 million for the quarter, as compared to the same period in 2015.
Other noninterest expense increased by $2.2 million, or 20.6%, for the quarter. The majority of this increase occurred due to increases in amounts for writedowns and carrying costs on ORE as well as services provided by third party vendors.
On a linked-quarter basis, total noninterest expense increased by $2.0 million, or 3.8%, for the quarter. Increases in salaries and employee benefits accounted for approximately $1.6 million of the increase. Occupancy expense increased by $299,000, or 6.5%, as additional amounts for hardware and software maintenance costs were incurred.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries, Fidelity Bank and LionMark Insurance Company, provides banking services and trust and wealth management services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” from Fidelity Southern Corporation’s 2015 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.
-end-
5
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
As of or for the Quarter Ended | |||||||||||||||||||
($ in thousands, except per share data) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||
INCOME STATEMENT DATA: | |||||||||||||||||||
Interest income | $ | 38,287 | $ | 39,898 | $ | 36,806 | $ | 34,292 | $ | 33,043 | |||||||||
Interest expense | 5,352 | 5,135 | 4,963 | 4,998 | 4,897 | ||||||||||||||
Net interest income | 32,935 | 34,763 | 31,843 | 29,294 | 28,146 | ||||||||||||||
Provision for loan losses | 2,485 | 2,118 | 3,128 | 500 | 3,097 | ||||||||||||||
Noninterest income | 47,143 | 39,325 | 29,971 | 24,886 | 28,676 | ||||||||||||||
Noninterest expense | 54,170 | 52,167 | 48,125 | 46,558 | 43,237 | ||||||||||||||
Net income | 15,065 | 12,515 | 6,645 | 4,541 | 6,777 | ||||||||||||||
PERFORMANCE: | |||||||||||||||||||
Earnings per common share - basic | $ | 0.57 | $ | 0.48 | $ | 0.26 | $ | 0.19 | $ | 0.29 | |||||||||
Earnings per common share - diluted | $ | 0.57 | $ | 0.48 | $ | 0.26 | $ | 0.18 | $ | 0.28 | |||||||||
Total revenues | $ | 85,430 | $ | 79,223 | $ | 66,777 | $ | 59,178 | $ | 61,719 | |||||||||
Book value per common share | $ | 13.78 | $ | 13.32 | $ | 13.17 | $ | 12.96 | $ | 13.03 | |||||||||
Tangible book value per common share | $ | 13.26 | $ | 12.78 | $ | 12.60 | $ | 12.40 | $ | 12.66 | |||||||||
Cash dividends paid per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.10 | |||||||||
Return on average assets | 1.37 | % | 1.15 | % | 0.64 | % | 0.46 | % | 0.72 | % | |||||||||
Return on average shareholders' equity | 16.90 | % | 14.58 | % | 8.07 | % | 5.90 | % | 9.08 | % | |||||||||
Net interest margin | 3.25 | % | 3.46 | % | 3.31 | % | 3.25 | % | 3.23 | % | |||||||||
END OF PERIOD BALANCE SHEET SUMMARY: | |||||||||||||||||||
Total assets | 4,389,685 | 4,395,611 | 4,281,927 | 4,101,499 | 3,849,063 | ||||||||||||||
Earning assets | 4,059,414 | 4,074,834 | 3,972,492 | 3,779,885 | 3,558,669 | ||||||||||||||
Loans, excluding Loans Held-for-Sale | 3,302,264 | 3,332,311 | 3,190,707 | 3,092,632 | 2,896,948 | ||||||||||||||
Total loans | 3,767,592 | 3,783,928 | 3,649,736 | 3,489,511 | 3,294,782 | ||||||||||||||
Total deposits | 3,630,594 | 3,538,908 | 3,569,606 | 3,421,448 | 3,179,511 | ||||||||||||||
Shareholders' equity | 362,647 | 347,770 | 335,870 | 329,778 | 301,459 | ||||||||||||||
Assets serviced for others | 9,207,070 | 8,926,574 | 8,699,107 | 8,336,541 | 8,033,479 | ||||||||||||||
DAILY AVERAGE BALANCE SHEET SUMMARY: | |||||||||||||||||||
Total assets | 4,368,579 | 4,329,974 | 4,207,171 | 3,942,683 | 3,751,012 | ||||||||||||||
Earning assets | 4,051,164 | 4,020,453 | 3,891,966 | 3,651,635 | 3,465,703 | ||||||||||||||
Loans, excluding Loans Held-for-Sale | 3,323,513 | 3,266,511 | 3,161,676 | 3,023,312 | 2,873,658 | ||||||||||||||
Total loans | 3,774,939 | 3,718,341 | 3,590,929 | 3,370,645 | 3,186,124 | ||||||||||||||
Total deposits | 3,561,713 | 3,573,131 | 3,470,966 | 3,212,691 | 3,146,089 | ||||||||||||||
Shareholders' equity | 354,542 | 341,393 | 331,056 | 308,952 | 296,195 | ||||||||||||||
Assets serviced for others | 9,043,167 | 8,807,270 | 8,480,382 | 8,162,343 | 7,902,116 | ||||||||||||||
ASSET QUALITY RATIOS: | |||||||||||||||||||
Net charge-offs to average loans | 0.29 | % | — | % | 0.25 | % | (0.20 | )% | 0.18 | % | |||||||||
Allowance to period-end loans | 0.90 | % | 0.89 | % | 0.88 | % | 0.86 | % | 0.91 | % | |||||||||
Nonperforming assets to total loans, ORE and repossessions | 1.57 | % | 1.54 | % | 1.66 | % | 2.03 | % | 1.93 | % | |||||||||
Allowance to nonperforming loans, ORE and repossessions | 0.57x | 0.58x | 0.53x | 0.42x | 0.47x | ||||||||||||||
SELECTED RATIOS: | |||||||||||||||||||
Loans to total deposits | 90.96 | % | 94.16 | % | 89.39 | % | 90.39 | % | 91.11 | % | |||||||||
Average total loans to average earning assets | 93.18 | % | 92.49 | % | 92.27 | % | 92.31 | % | 91.93 | % | |||||||||
Noninterest income to total revenue | 55.18 | % | 49.64 | % | 44.88 | % | 42.05 | % | 46.46 | % | |||||||||
Leverage ratio | 8.58 | % | 8.48 | % | 8.46 | % | 8.88 | % | 8.84 | % | |||||||||
Common equity tier 1 capital | 8.35 | % | 8.19 | % | 8.18 | % | 8.25 | % | 8.21 | % | |||||||||
Tier 1 risk-based capital | 9.46 | % | 9.31 | % | 9.35 | % | 9.47 | % | 9.50 | % | |||||||||
Total risk-based capital | 12.11 | % | 11.97 | % | 12.06 | % | 12.21 | % | 12.40 | % | |||||||||
6
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($ in thousands) | December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 149,711 | $ | 143,909 | $ | 86,133 | ||||||
Investment securities available-for-sale | 144,310 | 152,746 | 172,397 | |||||||||
Investment securities held-to-maturity | 16,583 | 16,792 | 14,398 | |||||||||
Loans held-for-sale | 465,328 | 451,617 | 397,834 | |||||||||
Loans | 3,302,264 | 3,332,311 | 2,896,948 | |||||||||
Allowance for loan losses | (29,831 | ) | (29,737 | ) | (26,464 | ) | ||||||
Loans, net of allowance for loan losses | 3,272,433 | 3,302,574 | 2,870,484 | |||||||||
Premises and equipment, net | 87,915 | 88,510 | 79,629 | |||||||||
Other real estate, net | 14,814 | 16,926 | 18,677 | |||||||||
Bank owned life insurance | 70,151 | 69,686 | 66,109 | |||||||||
Servicing rights, net | 99,295 | 82,020 | 84,944 | |||||||||
Other assets | 69,145 | 70,831 | 58,458 | |||||||||
Total assets | $ | 4,389,685 | $ | 4,395,611 | $ | 3,849,063 | ||||||
LIABILITIES | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing demand deposits | $ | 964,900 | $ | 976,178 | $ | 786,779 | ||||||
Interest-bearing deposits | ||||||||||||
Demand and money market | 1,214,383 | 1,175,711 | 1,040,281 | |||||||||
Savings | 399,754 | 341,000 | 362,793 | |||||||||
Time deposits | 1,051,557 | 1,046,019 | 989,658 | |||||||||
Total deposits | 3,630,594 | 3,538,908 | 3,179,511 | |||||||||
Short-term borrowings | 243,351 | 352,603 | 209,730 | |||||||||
Subordinated debt, net | 120,454 | 120,421 | 120,322 | |||||||||
Other liabilities | 32,639 | 35,909 | 38,041 | |||||||||
Total liabilities | 4,027,038 | 4,047,841 | 3,547,604 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Preferred stock | — | — | — | |||||||||
Common stock | 205,309 | 200,129 | 169,848 | |||||||||
Accumulated other comprehensive income, net | 692 | 2,901 | 1,544 | |||||||||
Retained earnings | 156,646 | 144,740 | 130,067 | |||||||||
Total shareholders’ equity | 362,647 | 347,770 | 301,459 | |||||||||
Total liabilities and shareholders’ equity | $ | 4,389,685 | $ | 4,395,611 | $ | 3,849,063 | ||||||
7
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the Quarter Ended | For the Year Ended | |||||||||||||||||||
($ in thousands, except per share data) | December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans, including fees | $ | 36,935 | $ | 38,481 | $ | 31,493 | $ | 143,605 | $ | 111,626 | ||||||||||
Investment securities | 1,241 | 1,268 | 1,523 | 5,233 | 4,936 | |||||||||||||||
Federal funds sold and bank deposits | 111 | 149 | 27 | 445 | 80 | |||||||||||||||
Total interest income | 38,287 | 39,898 | 33,043 | 149,283 | 116,642 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 3,382 | 3,336 | 3,308 | 13,194 | 11,349 | |||||||||||||||
Other borrowings | 474 | 345 | 133 | 1,424 | 650 | |||||||||||||||
Subordinated debt | 1,496 | 1,454 | 1,456 | 5,830 | 3,805 | |||||||||||||||
Total interest expense | 5,352 | 5,135 | 4,897 | 20,448 | 15,804 | |||||||||||||||
Net interest income | 32,935 | 34,763 | 28,146 | 128,835 | 100,838 | |||||||||||||||
Provision for loan losses | 2,485 | 2,118 | 3,097 | 8,231 | 4,351 | |||||||||||||||
Net interest income after provision for loan losses | 30,450 | 32,645 | 25,049 | 120,604 | 96,487 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Service charges on deposit accounts | 1,608 | 1,530 | 1,447 | 5,941 | 4,955 | |||||||||||||||
Other fees and charges | 1,902 | 2,305 | 1,589 | 7,731 | 5,356 | |||||||||||||||
Mortgage banking activities | 37,464 | 30,091 | 18,806 | 101,577 | 85,540 | |||||||||||||||
Indirect lending activities | 3,466 | 2,388 | 3,774 | 14,900 | 18,821 | |||||||||||||||
SBA lending activities | 1,330 | 1,202 | 1,477 | 5,659 | 5,265 | |||||||||||||||
Bank owned life insurance | 458 | 968 | 952 | 2,374 | 2,440 | |||||||||||||||
Securities gains | — | 296 | (329 | ) | 578 | (329 | ) | |||||||||||||
Other | 915 | 545 | 960 | 2,565 | 5,840 | |||||||||||||||
Total noninterest income | 47,143 | 39,325 | 28,676 | 141,325 | 127,888 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits | 25,808 | 24,224 | 20,581 | 96,684 | 76,871 | |||||||||||||||
Commissions | 9,514 | 9,450 | 6,118 | 33,907 | 27,342 | |||||||||||||||
Occupancy, net | 4,896 | 4,597 | 4,811 | 17,890 | 15,877 | |||||||||||||||
Communication | 1,265 | 1,328 | 1,203 | 4,938 | 4,336 | |||||||||||||||
Other | 12,687 | 12,568 | 10,524 | 47,601 | 38,520 | |||||||||||||||
Total noninterest expense | 54,170 | 52,167 | 43,237 | 201,020 | 162,946 | |||||||||||||||
Income before income tax expense | 23,423 | 19,803 | 10,488 | 60,909 | 61,429 | |||||||||||||||
Income tax expense | 8,358 | 7,288 | 3,711 | 22,143 | 22,294 | |||||||||||||||
NET INCOME | $ | 15,065 | $ | 12,515 | $ | 6,777 | $ | 38,766 | $ | 39,135 | ||||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||||||
Basic | $ | 0.57 | $ | 0.48 | $ | 0.29 | $ | 1.52 | $ | 1.77 | ||||||||||
Diluted | $ | 0.57 | $ | 0.48 | $ | 0.28 | $ | 1.50 | $ | 1.64 | ||||||||||
Weighted average common shares outstanding-basic | 26,230 | 25,993 | 23,083 | 25,497 | 22,137 | |||||||||||||||
Weighted average common shares outstanding-diluted | 26,342 | 26,127 | 24,071 | 25,813 | 23,863 | |||||||||||||||
8
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
LOANS BY CATEGORY
(UNAUDITED)
($ in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||
Commercial | $ | 784,737 | $ | 789,674 | $ | 791,698 | $ | 791,633 | $ | 703,292 | ||||||||||
SBA | 149,779 | 145,890 | 144,083 | 137,220 | 135,993 | |||||||||||||||
Total commercial and SBA loans | 934,516 | 935,564 | 935,781 | 928,853 | 839,285 | |||||||||||||||
Construction loans | 238,910 | 228,887 | 223,156 | 205,550 | 177,033 | |||||||||||||||
Indirect automobile | 1,575,865 | 1,631,903 | 1,512,406 | 1,463,005 | 1,449,480 | |||||||||||||||
Installment | 17,003 | 19,077 | 14,722 | 13,042 | 14,055 | |||||||||||||||
Total consumer loans | 1,592,868 | 1,650,980 | 1,527,128 | 1,476,047 | 1,463,535 | |||||||||||||||
Residential mortgage | 386,582 | 370,465 | 368,706 | 347,336 | 302,378 | |||||||||||||||
Home equity lines of credit | 149,388 | 146,415 | 135,936 | 134,846 | 114,717 | |||||||||||||||
Total mortgage loans | 535,970 | 516,880 | 504,642 | 482,182 | 417,095 | |||||||||||||||
Loans | 3,302,264 | 3,332,311 | 3,190,707 | 3,092,632 | 2,896,948 | |||||||||||||||
Loans held-for-sale: | ||||||||||||||||||||
Residential mortgage | 252,712 | 291,030 | 299,616 | 232,794 | 233,525 | |||||||||||||||
SBA | 12,616 | 10,587 | 9,413 | 14,085 | 14,309 | |||||||||||||||
Indirect automobile | 200,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
Total loans held-for-sale | 465,328 | 451,617 | 459,029 | 396,879 | 397,834 | |||||||||||||||
Total loans | $ | 3,767,592 | $ | 3,783,928 | $ | 3,649,736 | $ | 3,489,511 | $ | 3,294,782 | ||||||||||
Noncovered loans | $ | 3,286,336 | $ | 3,315,447 | $ | 3,171,138 | $ | 3,071,452 | $ | 2,874,308 | ||||||||||
Covered loans | 15,928 | 16,863 | 19,569 | 21,180 | 22,640 | |||||||||||||||
Loans held-for-sale | 465,328 | 451,618 | 459,029 | 396,879 | 397,834 | |||||||||||||||
Total loans | $ | 3,767,592 | $ | 3,783,928 | $ | 3,649,736 | $ | 3,489,511 | $ | 3,294,782 | ||||||||||
DEPOSITS BY CATEGORY
(UNAUDITED)
For the Quarter Ended | ||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
($ in thousands) | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 978,909 | — | % | $ | 1,004,924 | — | % | $ | 932,448 | — | % | $ | 786,993 | — | % | $ | 761,507 | — | % | ||||||||||||||
Interest-bearing demand deposits | 1,179,837 | 0.25 | % | 1,151,152 | 0.26 | % | 1,129,179 | 0.26 | % | 1,051,221 | 0.27 | % | 1,020,241 | 0.26 | % | |||||||||||||||||||
Savings deposits | 350,885 | 0.33 | % | 370,011 | 0.35 | % | 355,801 | 0.32 | % | 358,481 | 0.34 | % | 369,536 | 0.35 | % | |||||||||||||||||||
Time deposits | 1,052,082 | 0.89 | % | 1,047,044 | 0.86 | % | 1,053,538 | 0.84 | % | 1,015,996 | 0.90 | % | 994,805 | 0.92 | % | |||||||||||||||||||
Total average deposits | $ | 3,561,713 | 0.38 | % | $ | 3,573,131 | 0.37 | % | $ | 3,470,966 | 0.37 | % | $ | 3,212,691 | 0.41 | % | $ | 3,146,089 | 0.42 | % | ||||||||||||||
9
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
NONPERFORMING AND CLASSIFIED ASSETS
(UNAUDITED)
($ in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||
NONPERFORMING ASSETS | |||||||||||||||||||
Nonaccrual loans (5) | $ | 35,358 | $ | 32,796 | $ | 33,435 | $ | 29,611 | $ | 27,128 | |||||||||
Loans past due 90 days or more and still accruing | — | — | — | 1,671 | 1,284 | ||||||||||||||
Repossessions | 2,230 | 1,747 | 1,067 | 1,751 | 1,561 | ||||||||||||||
Other real estate (ORE) | 14,814 | 16,926 | 18,621 | 19,482 | 18,677 | ||||||||||||||
Nonperforming assets | $ | 52,402 | $ | 51,469 | $ | 53,123 | $ | 52,515 | $ | 48,650 | |||||||||
NONPERFORMING ASSET RATIOS | |||||||||||||||||||
Loans 30-89 days past due | $ | 7,090 | $ | 5,821 | $ | 6,705 | $ | 8,180 | $ | 9,353 | |||||||||
Loans 30-89 days past due to loans | 0.21 | % | 0.17 | % | 0.21 | % | 0.26 | % | 0.32 | % | |||||||||
Loans past due 90 days or more and still accruing to loans | — | % | — | % | — | % | 0.05 | % | 0.04 | % | |||||||||
Nonperforming assets to loans, ORE, and repossessions | 1.58 | % | 1.54 | % | 1.65 | % | 1.69 | % | 1.67 | % | |||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Classified Asset Ratio(3) | 21.20 | % | 21.47 | % | 21.79 | % | 23.71 | % | 25.77 | % | |||||||||
Nonperforming loans as a % of loans | 1.07 | % | 0.98 | % | 1.05 | % | 1.01 | % | 0.98 | % | |||||||||
ALL to nonperforming loans | 84.37 | % | 90.68 | % | 83.86 | % | 85.44 | % | 93.14 | % | |||||||||
Net charge-offs/(recoveries), annualized to average loans | 0.31 | % | — | % | 0.25 | % | (0.02 | )% | 0.18 | % | |||||||||
ALL as a % of loans | 0.90 | % | 0.89 | % | 0.88 | % | 0.86 | % | 0.91 | % | |||||||||
ALL as a % of loans, excluding acquired loans(4) | 0.99 | % | 0.98 | % | 0.97 | % | 0.96 | % | 0.96 | % | |||||||||
CLASSIFIED ASSETS | |||||||||||||||||||
Classified loans(1) | $ | 68,128 | $ | 67,826 | $ | 62,120 | $ | 71,877 | $ | 74,781 | |||||||||
ORE and repossessions | $ | 17,044 | $ | 16,792 | $ | 16,396 | $ | 17,009 | $ | 17,125 | |||||||||
Total classified assets(2) | $ | 85,172 | $ | 84,618 | $ | 78,516 | $ | 88,886 | $ | 91,906 | |||||||||
(1) Amount of SBA guarantee included | $ | 7,735 | $ | 8,665 | $ | 5,007 | $ | 5,226 | $ | 4,680 | |||||||||
(2) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share and purchase discounts | |||||||||||||||||||
(3) Classified asset ratio is defined as classified assets as a percentage of the sum of Tier 1 capital plus allowance for loan losses | |||||||||||||||||||
(4) Allowance calculation excludes the recorded investment of acquired loans, due to valuation calculated at acquisition | |||||||||||||||||||
(5) Excludes purchased credit impaired (PCI) loans which are not removed from their accounting pool | |||||||||||||||||||
10
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||
Average loans outstanding(1) | $ | 1,702,006 | $ | 1,726,342 | $ | 1,642,829 | $ | 1,419,389 | $ | 1,563,498 | ||||||||||||
Loans serviced for others | $ | 1,130,289 | $ | 1,152,636 | $ | 1,219,909 | $ | 1,171,453 | $ | 1,117,210 | ||||||||||||
Past due loans: | ||||||||||||||||||||||
Amount 30+ days past due | $ | 2,972 | $ | 1,585 | $ | 1,588 | $ | 1,087 | $ | 1,829 | ||||||||||||
Number 30+ days past due | 252 | 135 | 129 | 113 | 179 | |||||||||||||||||
30+ day performing delinquency rate(2) | 0.17 | % | 0.09 | % | 0.10 | % | 0.07 | % | 0.11 | % | ||||||||||||
Nonperforming loans | $ | 1,278 | $ | 1,231 | $ | 887 | $ | 797 | $ | 1,117 | ||||||||||||
Nonperforming loans as a percentage of period end loans(2) | 0.07 | % | 0.07 | % | 0.05 | % | 0.05 | % | 0.07 | % | ||||||||||||
Net charge-offs | $ | 1,306 | $ | 895 | $ | 751 | $ | 797 | $ | 1,014 | ||||||||||||
Net charge-off rate(3) | 0.32 | % | 0.23 | % | 0.20 | % | 0.21 | % | 0.28 | % | ||||||||||||
Number of vehicles repossessed during the period | 164 | 145 | 120 | 127 | 131 | |||||||||||||||||
Average beacon score | 758 | 758 | 756 | 756 | 757 | |||||||||||||||||
Production by state: | ||||||||||||||||||||||
Alabama | $ | 11,613 | $ | 18,296 | $ | 21,820 | $ | 19,971 | $ | 17,758 | ||||||||||||
Arkansas | 32,789 | 48,143 | 44,548 | 34,340 | 39,436 | |||||||||||||||||
North Carolina | 13,734 | 21,874 | 25,159 | 19,660 | 20,378 | |||||||||||||||||
South Carolina | 11,953 | 14,146 | 17,031 | 16,471 | 13,661 | |||||||||||||||||
Florida | 56,432 | 71,530 | 77,108 | 81,638 | 95,054 | |||||||||||||||||
Georgia | 29,150 | 43,948 | 51,253 | 47,141 | 48,241 | |||||||||||||||||
Mississippi | 17,784 | 26,260 | 28,414 | 27,233 | 27,032 | |||||||||||||||||
Tennessee | 12,963 | 18,661 | 21,683 | 17,529 | 18,156 | |||||||||||||||||
Virginia | 6,063 | 8,937 | 12,546 | 11,580 | 12,640 | |||||||||||||||||
Texas | 24,942 | 31,851 | 32,522 | 35,445 | 36,127 | |||||||||||||||||
Louisiana | 49,849 | 57,039 | 60,557 | 38,430 | 27,147 | |||||||||||||||||
Oklahoma (4) | 1,780 | 945 | 1,238 | 1,796 | 82 | |||||||||||||||||
Total production by state | $ | 269,052 | $ | 361,630 | $ | 393,879 | $ | 351,234 | $ | 355,712 | ||||||||||||
Loan sales | $ | 97,916 | $ | 64,793 | $ | 175,991 | $ | 171,834 | $ | 111,683 | ||||||||||||
Portfolio yield(1) | 2.88 | % | 2.81 | % | 2.77 | % | 2.72 | % | 2.79 | % | ||||||||||||
(1) | Includes held-for-sale | |||||||||||||||||||||
(2) | Calculated by dividing loan category as of the end of the period by period-end loans including held for sale for the specified loan portfolio | |||||||||||||||||||||
(3) | Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category | |||||||||||||||||||||
(4) | Expanded into Oklahoma in November 2015 | |||||||||||||||||||||
11
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
INCOME FROM MORTGAGE BANKING ACTIVITIES | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
(in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||
Marketing gain, net | $ | 19,364 | $ | 25,240 | $ | 22,734 | $ | 15,162 | $ | 15,407 | ||||||||||||
Origination points and fees | 3,786 | 3,911 | 4,101 | 3,014 | 2,914 | |||||||||||||||||
Loan servicing revenue | 5,088 | 4,896 | 4,631 | 4,492 | 4,377 | |||||||||||||||||
Gross mortgage revenue | $ | 28,238 | $ | 34,047 | $ | 31,466 | $ | 22,668 | $ | 22,698 | ||||||||||||
Less: | ||||||||||||||||||||||
MSR amortization | (3,918 | ) | (4,414 | ) | (3,610 | ) | (3,272 | ) | (2,893 | ) | ||||||||||||
MSR recovery (impairment), net | 13,144 | 458 | (8,569 | ) | (4,661 | ) | (999 | ) | ||||||||||||||
Total income from mortgage banking activities | $ | 37,464 | $ | 30,091 | $ | 19,287 | $ | 14,735 | $ | 18,806 | ||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
ANALYSIS OF MORTGAGE LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||
Funded loan type (UPB): | ||||||||||||||||||||||
Conventional | 68.9 | % | 68.9 | % | 65.9 | % | 66.1 | % | 60.5 | % | ||||||||||||
FHA/VA/USDA | 21.6 | % | 22.2 | % | 23.3 | % | 21.7 | % | 23.4 | % | ||||||||||||
Jumbo | 9.5 | % | 8.9 | % | 10.8 | % | 12.2 | % | 16.1 | % | ||||||||||||
Portfolio Production: | $ | 38,907 | $ | 45,586 | $ | 47,847 | $ | 36,462 | $ | 36,520 | ||||||||||||
% for purchases | 61.3 | % | 66.7 | % | 76.8 | % | 71.5 | % | 77.5 | % | ||||||||||||
% for refinance loans | 38.7 | % | 33.3 | % | 23.2 | % | 28.5 | % | 22.5 | % | ||||||||||||
Production by region: | ||||||||||||||||||||||
Georgia | $ | 532,177 | $ | 580,170 | $ | 526,446 | $ | 341,074 | $ | 341,115 | ||||||||||||
Florida/Alabama | 51,625 | 52,156 | 54,231 | 42,412 | 44,873 | |||||||||||||||||
Virginia/Maryland | 139,283 | 160,959 | 160,644 | 112,769 | 109,685 | |||||||||||||||||
North and South Carolina | 33,783 | 31,332 | 33,497 | 27,567 | 20,973 | |||||||||||||||||
Total retail | 756,868 | 824,617 | 774,818 | 523,822 | 516,646 | |||||||||||||||||
Wholesale | — | 3,507 | 40,233 | 46,905 | 51,224 | |||||||||||||||||
Total production by region | $ | 756,868 | $ | 828,124 | $ | 815,051 | $ | 570,727 | $ | 567,870 | ||||||||||||
Gross pipeline of locked loans to be sold (UPB) | $ | 211,921 | $ | 394,773 | $ | 387,777 | $ | 370,497 | $ | 226,485 | ||||||||||||
Loans held for sale (UPB) | $ | 250,094 | $ | 281,418 | $ | 288,734 | $ | 226,327 | $ | 228,586 | ||||||||||||
Total loan sales (UPB) | $ | 758,775 | $ | 796,379 | $ | 712,712 | $ | 547,614 | $ | 520,742 | ||||||||||||
Conventional | 72.8 | % | 70.0 | % | 70.5 | % | 66.7 | % | 63.7 | % | ||||||||||||
FHA/VA/USDA | 22.6 | % | 24.0 | % | 23.0 | % | 21.4 | % | 27.0 | % | ||||||||||||
Jumbo | 4.6 | % | 6.0 | % | 6.5 | % | 11.9 | % | 9.3 | % | ||||||||||||
Average loans outstanding(1) | $ | 634,511 | $ | 635,529 | $ | 598,403 | $ | 495,209 | $ | 450,263 | ||||||||||||
(1) Includes held-for-sale | ||||||||||||||||||||||
12
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
THIRD PARTY MORTGAGE LOAN SERVICING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||||
Loans serviced for others (UPB) | $ | 7,787,470 | $ | 7,489,954 | $ | 7,200,540 | $ | 6,894,083 | $ | 6,652,700 | ||||||||||||
Average loans serviced for others (UPB) | $ | 7,625,384 | $ | 7,337,291 | $ | 7,022,718 | $ | 6,781,135 | $ | 6,535,608 | ||||||||||||
MSR book value, net of amortization | 95,282 | 90,982 | 87,652 | 84,111 | 82,290 | |||||||||||||||||
MSR impairment | (9,152 | ) | (22,295 | ) | (22,753 | ) | (14,184 | ) | (9,524 | ) | ||||||||||||
MSR net carrying value | 86,130 | 68,687 | 64,899 | 69,927 | 72,766 | |||||||||||||||||
MSR carrying value as a % of period end UPB | 1.11 | % | 0.92 | % | 0.90 | % | 1.01 | % | 1.09 | % | ||||||||||||
Delinquency % loans serviced for others | 0.69 | % | 0.76 | % | 0.55 | % | 0.54 | % | 0.59 | % | ||||||||||||
MSR revenue multiple(1) | 4.14 | 3.44 | 3.42 | 3.83 | 4.08 | |||||||||||||||||
(1) MSR carrying value (period end) to period end loans serviced for others divided by the ratio of annualized mortgage loan servicing revenue to average mortgage loans serviced for others | ||||||||||||||||||||||
13
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
For the Quarter Ended | |||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
($ in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (1) | $ | 3,774,939 | $ | 36,980 | 3.90 | % | $ | 3,186,124 | $ | 31,558 | 3.93 | % | |||||||||
Investment securities (1) | 179,802 | 1,318 | 2.92 | % | 217,375 | 1,566 | 2.86 | % | |||||||||||||
Federal funds sold and bank deposits | 96,423 | 111 | 0.46 | % | 62,204 | 27 | 0.17 | % | |||||||||||||
Total interest-earning assets | 4,051,164 | 38,409 | 3.77 | % | 3,465,703 | 33,151 | 3.79 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 32,390 | 19,346 | |||||||||||||||||||
Allowance for loan losses | (29,335 | ) | (24,919 | ) | |||||||||||||||||
Premises and equipment, net | 88,361 | 79,066 | |||||||||||||||||||
Other real estate | 16,023 | 17,157 | |||||||||||||||||||
Other assets | 209,976 | 194,659 | |||||||||||||||||||
Total assets | $ | 4,368,579 | $ | 3,751,012 | |||||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,179,837 | $ | 750 | 0.25 | % | $ | 1,020,241 | $ | 669 | 0.26 | % | |||||||||
Savings deposits | 350,885 | 289 | 0.33 | % | 369,536 | 328 | 0.35 | % | |||||||||||||
Time deposits | 1,052,082 | 2,343 | 0.89 | % | 994,805 | 2,311 | 0.92 | % | |||||||||||||
Total interest-bearing deposits | 2,582,804 | 3,382 | 0.52 | % | 2,384,582 | 3,308 | 0.55 | % | |||||||||||||
Short-term borrowings | 295,369 | 474 | 0.64 | % | 154,772 | 133 | 0.34 | % | |||||||||||||
Subordinated debt | 120,439 | 1,496 | 4.94 | % | 120,305 | 1,456 | 4.80 | % | |||||||||||||
Total interest-bearing liabilities | 2,998,612 | 5,352 | 0.71 | % | 2,659,659 | 4,897 | 0.73 | % | |||||||||||||
Noninterest-bearing liabilities and shareholders' equity: | |||||||||||||||||||||
Demand deposits | 978,909 | 761,507 | |||||||||||||||||||
Other liabilities | 36,516 | 33,651 | |||||||||||||||||||
Shareholders’ equity | 354,542 | 296,195 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,368,579 | $ | 3,751,012 | |||||||||||||||||
Net interest income/spread | $ | 33,057 | 3.06 | % | $ | 28,254 | 3.06 | % | |||||||||||||
Net interest margin | 3.25 | % | 3.23 | % | |||||||||||||||||
14
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
For the Year Ended | |||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
($ in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (1) | $ | 3,614,456 | $ | 143,783 | 3.98 | % | $ | 2,895,847 | $ | 111,828 | 3.86 | % | |||||||||
Investment securities (1) | 192,274 | 5,574 | 2.90 | % | 176,382 | 5,117 | 2.90 | % | |||||||||||||
Federal funds sold and bank deposits | 94,841 | 445 | 0.47 | % | 47,106 | 80 | 0.17 | % | |||||||||||||
Total interest-earning assets | 3,901,571 | 149,802 | 3.84 | % | 3,119,335 | 117,025 | 3.75 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 29,796 | 16,092 | |||||||||||||||||||
Allowance for loan losses | (27,797 | ) | (24,443 | ) | |||||||||||||||||
Premises and equipment, net | 86,807 | 67,192 | |||||||||||||||||||
Other real estate | 18,268 | 18,375 | |||||||||||||||||||
Other assets | 203,989 | 180,578 | |||||||||||||||||||
Total assets | $ | 4,212,634 | $ | 3,377,129 | |||||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 1,128,029 | $ | 2,910 | 0.26 | % | $ | 889,985 | $ | 2,164 | 0.24 | % | |||||||||
Savings deposits | 359,194 | 1,199 | 0.33 | % | 322,385 | 1,096 | 0.34 | % | |||||||||||||
Time deposits | 1,042,504 | 9,085 | 0.87 | % | 873,352 | 8,089 | 0.93 | % | |||||||||||||
Total interest-bearing deposits | 2,529,727 | 13,194 | 0.52 | % | 2,085,722 | 11,349 | 0.54 | % | |||||||||||||
Short-term borrowings | 262,674 | 1,424 | 0.54 | % | 215,685 | 650 | 0.30 | % | |||||||||||||
Subordinated debt | 120,388 | 5,830 | 4.84 | % | 90,303 | 3,805 | 4.21 | % | |||||||||||||
Total interest-bearing liabilities | 2,912,789 | 20,448 | 0.70 | % | 2,391,710 | 15,804 | 0.66 | % | |||||||||||||
Noninterest-bearing liabilities and shareholders' equity: | |||||||||||||||||||||
Demand deposits | 925,965 | 674,114 | |||||||||||||||||||
Other liabilities | 39,940 | 28,724 | |||||||||||||||||||
Shareholders’ equity | 333,940 | 282,581 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,212,634 | $ | 3,377,129 | |||||||||||||||||
Net interest income/spread | $ | 129,354 | 3.14 | % | $ | 101,221 | 3.09 | % | |||||||||||||
Net interest margin | 3.32 | % | 3.24 | % | |||||||||||||||||
(1) Interest income includes the effect of taxable-equivalent adjustment using a 35% tax rate.
15